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How to cut your petrol costs as budget fuel duty increase could put 5p on a litre
A 152,000-signature petition urges a freeze on the 5p-per-litre fuel duty cut set to expire in March 2026, potentially raising fuel tax by 5p, analysts warn.
- Earlier this month, Labour confirmed the temporary 5p-per-litre fuel-duty cut will expire in March 2026, and Chancellor Rachel Reeves will decide its future in the budget.
- Tomorrow opposition MPs will deliver a 152,000-signature petition to Number 10 and 11 Downing Street asking for a fuel-duty freeze, arguing it would stimulate motorists and restore government faith.
- The current fuel tax rate stands at 52.95 pence per litre and could rise to over 57.95 pence, with the average driver facing roughly £250 a year in extra costs.
- Officials are reportedly weighing cutting domestic fuel VAT from 5% to 0% and the Chancellor's 'pay-per-mile' tax proposal for electric vehicle owners to offset lost revenue.
- Fuel duty has been frozen for 15 years and sits 6p below Labour Party levels, while BEV and PHEV registrations rose 28.9% and 37.1% Jan–Oct 2025, with 10.5% of used cars electrified in Q3.
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